graphic
News
Philip Morris to pay $3B
June 6, 2001: 7:49 p.m. ET

Los Angeles jury orders tobacco giant to pay $3 billion to a lifelong smoker
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - A jury in Los Angeles on Wednesday ordered Philip Morris Cos. Inc. to pay more than $3 billion – the largest individual award ever in a tobacco case - to a 56-year-old man with cancer who claimed the tobacco giant did not warn him of the health risks of smoking.

The verdict, was reached on Tuesday after nine days of deliberations by a Los Angeles Superior Court jury and read out in court on Wednesday. The damage award included $3 billion in punitive damages and almost $6 million in compensatory damages.

Philip Morris will appeal the verdict.

  graphic
Richard Boeken, who suffers from brain and lung cancer, sought $12.37 million in compensatory damages and between $100 million and $10 billion in punitive and exemplary damages from Philip Morris. He accused the cigarette maker of fraud, conspiracy and negligence.

Lawyers for Boeken, a securities and oil broker, claimed at the trial that he began smoking Marlboro cigarettes at age 13 and did not become aware of the health warnings until the mid-1990s.

Bill Ohlemeyer, associate general counsel for Philip Morris, said for the jury to reach a verdict like this on the evidence they heard is outrageous.

"It strains credibility to suggest that he wasn't aware of the risks [of smoking]," Ohlemeyer said.

Check on tobacco stocks

Boeken's lawyers argued that his client was a victim of a decades-long tobacco industry campaign to promote smoking, and Philip Morris has concealed the serious dangers of smoking.

Ohlemeyer claimed that Boeken has ignored health warnings about the dangers of cigarettes and chose to smoke despite the risk.   

The lawsuit is the first smoking and health related lawsuit to reach trial in Los Angeles. It was the second blow to cigarette makers in a week. On Monday, a New York City jury ordered major tobacco companies to pay $17.8 million to cover the health costs of ailing smokers.

Shares of Philip Morris (MO: Research, Estimates) shares fell $1.75 to $48.25 after hours.  graphic


- from staff and wire reports

  RELATED STORIES

FTC to name 'Joe Camel' defender - May 31, 2001

Philip Morris hikes cigarette prices - Apr. 25, 2001

  RELATED SITES

Philip Morris


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.